Thorn Group (TGA)
Thorn Group, owner of consumer goods rental retail store Radio Rentals, has thrived in conditions of consumer caution that have hurt other retail stocks.
Thorn Group , owner of consumer goods rental retail stores Radio Rentals and Rentlo, has thrived in conditions of consumer caution that have hurt other retail stocks. Analysts have labelled the stock as a defensive pick, with sales receiving a boost when household budgets are stretched. It recently posted a double-digit rise in full-year earnings of 21.6 per cent, its third consecutive year of growth, with 7.5 per cent customer growth for its core Radio Rentals business. The stock is also one of the few retail companies to get a boost from the strong Australian dollar, which drives down input costs for the flat-panel TVs and PCs the company rents out to customers. Analysts are overwhelmingly positive on the stock with a unanimous “buy" rating and average target price of $2.42 over the next 12 months. With an impressive year to date return of 100.28 per cent and a cheap price-earnings ratio of 9.45 times, the stock stands out in the otherwise embattled retail sector.
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